Benefiting supply side reform Funds favor textile sector

Summary:

On May 2nd, both the Shanghai and Shenzhen stocks opened lower and closed weaker throughout the day. Eventually, both ended with a slight decline. The two cities had a total turnover of 401,61 billion yuan. The amount of energy in the two cities shrank slightly compared to last Friday, but the net outflow of funds came out. The trend is still relatively clear. According to BigView SuperView data, there was a net outflow of 11.957 billion yuan in the capital of the two cities yesterday.

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This is mainly reflected in the real estate, ferrous metals, non-metallic minerals, water supply, chemical fiber and other plates. Among them, the real estate sector ranked the first in net outflow of funds, net outflow of 824 million yuan, the net outflow of the largest stocks for the Rongsheng development, the first open shares, China Hi-Tech, net outflows were 88 million, 0.59 billion, 0.55 billion. The ferrous metal stocks ranked second in net outflows, with a net outflow of 819 million yuan. The largest net outflows were shares of Hegang, Ordos, and Baosteel, with net outflows of 669 million yuan, 0.39 billion yuan, and 27 million yuan respectively. Non-metallic mineral blocks ranked third in net outflow of funds, with a net outflow of 811 million yuan. The largest net outflows were Jinshao shares, Kun Cai Technology, and Samsung New Materials, with net outflows of 231 million yuan, 155 million yuan, and 0.72 billion yuan, respectively.

Such capital flow shows that some hot money began to use the market to pursue the enthusiasm of Xiong concept stocks and gradually lighten up.

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However, on the one hand, the “Belt and Road” summit is about to be held, and the “Belt and Road” concept stocks are expected to come forward to support the market; on the other hand, the recent adjustments are relatively full, and the performance of mines is also mostly detonated, and the enthusiasm of market participants to absorb low stocks has picked up. . Reflected in the disk, instruments, textiles, brokerages and other sectors have funds to increase their positions. Among them, the instrument and instrument panel ranked first in net capital inflows, with a net inflow of 324 million yuan, and the largest net inflows were Xianhe Environmental Protection, Nanhua Instruments, and Jizhi, with a net inflow of 120 million yuan, 0.11 billion yuan, and 0.07 billion yuan respectively. The textile industry ranked second in net inflows of funds, with a net inflow of 232 million yuan. The largest net inflows were Changshan, Xinyei, and Vosges, with a net inflow of 109 million yuan, 0.03 billion yuan, and 0.03 billion yuan respectively. Brokerage stocks ranked third in net capital inflows, with a net inflow of 220 million yuan. The largest net inflows were Baoshuo, Founder Securities and Dongxing Securities, with net inflows of 0.50 billion yuan, 0.29 billion yuan, and 0.22 billion yuan, respectively.

Based on this, it can be speculated that the market recognition of the textile sector is increasing. This may be due to the deepening of supply-side structural reforms, which has led to a large number of SMEs lagging behind production capacity to withdraw from the market, thus leaving more room for industry growth for listed companies with financial strength and scientific research strength. At the same time, as China's residents’ spending power has increased, the trend of consumption upgrades has become clearer, and the sales share of high-quality fabric products has risen rapidly, which is conducive to the development of listed companies and the improvement of business performance. Therefore, the valuation of individual stocks in the textile industry sector The center of gravity is expected to pick up.

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